#数字资产市场洞察 CPI data just released, and many people are discussing what it really means. Today, let's talk about the relationship between CPI and crypto assets.

**First, understand what CPI is**

CPI stands for Consumer Price Index, which is a measure of the increase in prices of everyday goods. For example, if the CPI is 3.1%, it means you'll need to spend 3.1% more money to buy the same items this year. Last year, an iPhone cost $100; this year, it costs $103.1—that's inflation.

**Why pay attention to this data**

CPI essentially reflects the rate of inflation. Moderate inflation is good for the economy, but if inflation is too high, people's purchasing power can't keep up, and savings lose value. That's why the Federal Reserve takes action—by raising or lowering interest rates to regulate the economy.

Logic of rate hikes: High CPI → Excess market liquidity → Raise interest rates to direct money into government bonds and bank deposits → Market liquidity tightens

Logic of rate cuts: Low CPI → Insufficient liquidity → Lower interest rates to encourage funds to flow out of bonds and deposits → Market liquidity increases

**Why CPI below expectations benefits $BTC, $ETH, and other cryptocurrencies**

Data below expectations → Inflation is restrained → The Fed begins to cut rates → Funds withdraw from fixed income products → Flow into stocks, cryptocurrencies, and other risk assets → $BTC and mainstream coins collectively rally

In simple terms: Lower interest rates mean cheaper money, so everyone looks for places to grow their wealth, making risk assets more attractive.